Webstore Help Page!

Rare Coins and the Rare Coin Market

The Reeded Edge specializes in servicing collectors of coins and fine collectibles. We pride ourselves in a one-on-one relationship with our clients. Our goal is provide items to their collection that offer great quality at a fair price. We realize, by default, your collection becomes an investment and we take your acquisition seriously. Below you will find some terminology commonly used in the coin market. You will also find these terms used throughout our website. Hopefully these explanations will help you with both of the above.

1. What are Mint State (MS) Coins?
 
Coins derive a large degree of their value from condition. A circulated coin will exhibit varying amounts of wear depending upon the degree of circulation.

Uncirculated is synonymous with mint state (MS). By definition, this means a coin that has never circulated and therefore exhibits no wear whatsoever. Mint state (MS) is the term that all grading services use as a reference on certified coin holders. Other terms referring to uncirculated coins include Brilliant Uncirculated (BU), Choice Brilliant Uncirculated (CH BU), and Gem Brilliant Uncirculated (GEM BU).

Not all mint state coins are of equal quality. Differences in quality come from a number of factors, including strike, surface preservation, and luster. Some flaws on mint state coins are mint-made. Some of the causes of these deficiencies include poor preparation of the dies, worn out dies, and inadequate striking pressure. Other flaws on mint state coins occur after the actual minting process. These can include bag marks, roll or stacking friction, and toning or surface deposits. The latter could also be a result from improper storage after the fact.


2. Grading Mint State Coins

Since there will be variations in the quality of mint state coins there are also variations in how these coins are graded. The Sheldon scale provides for a numerical equivalence from 60 to 70 as a distinction of quality. An MS-60 coin would be considered a basal uncirculated piece. Although this coin would exhibit no wear, it may exhibit numerous other defects or flaws. Conversely an MS-70 coin would be absolutely perfect with no flaws whatsoever. Most uncirculated coins fall somewhere in between these two extremes.

Grading services typically factor in four characteristics to arrive at a numerical grade: strike, luster, surface preservation, and eye appeal. Strike refers to the amount of original design elements visible on the coin’s raised surfaces or devices. The luster refers to the original shine on the coin surface. Surface preservation refers to the presence or absence of any types of marks, scratches, or die/planchet flaws visible on the coin. Eye appeal is a little more subjective. Basically it is a culmination of strike, luster, and surface preservation and how these translate to the overall look of the coin. To explore this topic in more depth, please read our article on grading mint state coins.

These numerical grades loosely correspond to the adjectival grades that were used to describe coins prior to the advent of third party grading. This may shed some light on the differences between various grades. For example, Brilliant uncirculated now corresponds to coins in the MS-60-62 grade range. Choice uncirculated corresponds to the MS-63 grade and on coins that were once called near gems; today's corresponding grade is MS-64. A gem uncirculated coin is now called MS-65 or MS-66. Superb gem uncirculated is now considered to be either MS-67 or MS-68. Very few non-modern coins are ever graded higher than MS-68.

Grading skills are developed through many years of practice and experience. Volumes have been written to describe the intricacies and nuances and how they relate to various types of coins. Fortunately to be a successful collector or investor of rare coins, you don’t need to develop perfect grading skills on your own. Read on to learn more.


3. What are Proof (PR) Coins?
 
Now that you are somewhat familiar with mint state coins, let’s discuss proof coins. The distinction here is that these coins were struck for presentation purposes and were made exclusively for collectors. The coin’s blank or planchets along with the coin’s dies were both specially prepared. Both are heavily polished. In addition, proof coins usually receive multiple blows from the mint’s press which result in an unusually well-detailed coin with mirror-like surfaces. On some proof coins, especially modern proof coins, there will be a stark contrast between the fields and devices. This is referred to as a cameo proof.

Proof coins are graded numerically in much the same manner as mint state coins. Their designation will start with a PR instead of the MS before the numerical equivalent. For example, a Gem Proof may be graded PR-66. The proof designation is a reference to the method of manufacture.

4. Third-Party Grading
 
Since 1986, coins have been authenticated and graded by independent third-party companies and encapsulated in a hard plastic holder often referred to as a slab. The holders are sonically sealed and tamper proof to prevent any alterations. A small label contained inside of the holder identifies the coin along with its numerical grade. This label also contains a unique serial number which is stored in a database at each of the respective grading services. The process of third party grading serves the collector in several ways: first, it substantiates that coin is authentic; secondly, it protects the coin in an inert sonically sealed holder; finally, a grade along with a unique serial number is assigned to the coin. We at The Reeded Edge primarily handle coins graded by the major grading services: PCGS (Professional Coin Grading Service), NGC (Numismatic Guaranty Corporation), and ANACS (American Numismatic Association Certification Service). It should be noted that ANACS is now privately owned and is no longer associated with the American Numismatic Association. These three services are all respected for their consistent grading, authentication abilities, and superior liquidity of their graded coins.

Third-party grading has eliminated much of the ambiguity in coin grading. The grading services have established a standard which is now universally accepted throughout the hobby. Another advantage to third-party graded coins is that the above mentioned companies guarantee their grades. For example if you purchase a coin that you believe is lower quality than the assigned grade on the holder, you may resubmit the coin to the grading service for further evaluation. Should the grade be lowered during this process, the grading service will compensate you for the value between the two grades.

Although third-party grading removes much of the risk of purchasing rare coins, it does not eliminate all risk. At any particular assigned grade, there will be both low end and high end examples for the assigned grade. It would be remiss to not discuss uncertified coins (raw coins) under this topic. There are many fine coins that have not yet been certified, as well as many fine dealers that buy and sell exclusively raw coins. To ignore these coins or these dealers would be a serious error in judgment. But with that said, some basic grading skills should be acquired before spending any serious money on raw coins especially if the dealer is not a known entity. It goes to reason that a trustworthy dealer, whether selling raw or certified coins, is worth their weight in gold.


5. Starting Your Collection

The starting point for any collection will be as unique and individual as the coins themselves. While there is no correct answer to this question, the most valuable advice would be to buy coins that interest you. View examples on our web store or visit our reference library for ideas. Rebuilding or completing an album from childhood or using a coin or coins passed down from a relative could be a consideration. Regardless of the inspiration, the opening chapter to the story of your collection should be a personal statement.

Specialization will be a key in the proper development of your collection. Whether you target a specific series or focus on a group of coins with shared attributes, specializing will provide organization, purpose, and theme to your collection and make it more than a simple accumulation of material.

You will find many articles on our web site that will help you refine your collecting goals. Start slowly and simply at first, then allow your collection to develop a level of sophistication that you are comfortable with. A knowledgeable dealer makes a great resource for discussing your interests and goals. One of the true joys of collecting rare coins is allowing your goals and tastes to develop and mature over time.

If you are just starting out, send us an email. We can make sure that you have the right reference books and make some suggestions about how you can learn more. We carry a full selection of numismatic guides and reference books on our web store to assist you with gathering information.


6. Want lists- Enlisting a Dealer’s Help

A service we provide to our customers as a rare coin dealer is servicing want lists. Collectors submit lists of items they are seeking to acquire and we source these items for them. Want lists typically include information regarding the year, type, and condition of the item. The date, denomination, mint, condition, and preferred grading service are provided on the list when the subject is coins. A want list does not obligate the collector to purchase, but it does give you an opportunity to purchase without competition. When we obtain a coin that fits your want list, we will contact you via phone or email. You can remit a want list by using our submit want list page.

7. Networking- Clubs, Organizations, and Conventions

Once you have begun collecting, networking with other members of the hobby will benefit you in terms of knowledge and opportunity. Contact a local dealer or search online to discover local coin clubs you can join. Memberships to national level organizations, such as the ANA (American Numismatic Association), ANS (American Numismatic Society), EAC (Early American Coppers), and PNG (Professional Numismatists Guild) may benefit you as well. Attending state, regional or national coin conventions can benefit the development of your collection by allowing you to meet other dealers and collectors in the hobby as well as enriching your knowledge base through attending various seminars, lectures, and presentations.